Canada's slow Property Market sees Investors Look at Turkey
By: Cameron Deggin
Created
13 Sep 2025
Canada’s real estate party didn’t end with a bang, it drifted into a chill groove. After the fastest rate-hike era on record, 2024 to 2025 brought rate cuts, and as a result, a property market that feels like someone drastically turned down the volume. In July 2025, CREA reported inventory tightening to 4.4 months and prices staying flat – down 3.4% year-over-year on the benchmark.
Why Canada’s Real Estate Market is Slowing
In Ontario and British Columbia, the picture is clear: more home listings are being posted and buyers are waiting longer to purchase. According to RBC’s August 12, 2025 outlook, 2026 is viewed as another small step down before finding a floor. In other words: the correction isn’t chaos just yet, it’s a slow gravitational pull downwards.
Lower rates were supposed to help. The Bank of Canada started cutting in June 2024 and followed up through 2025, taking the policy rate from 4.75% in June, to 2.75% by March 12, 2025. Yet, more affordable money hasn’t fully revived demand. Buyers love lower rates, but they love certainty even more.
A Reuters poll of housing experts released in June 2025, pointed to a 2% price decline for the year, with overall stabilisation expected by late 2025 or in 2026. Some of that caution ties to trade conflicts and low confidence. Essentially, Canadian real estate runs on emotion as much as it does on numbers.
- Currency advantage: Many Turkish property values are quoted and sold in Lira terms. For Canadian Dollar-based buyers, currency has effectively handed you a discount with CAD stretching further on the Bosphorus than it did just a few years ago. The Central Bank’s housing price index shows strong nominal gains through 2025, but inflation-adjusted values have softened.
- Yields that feel like yields: Turkey’s average gross rental yields remain in the high single digits, with neighbourhood-level pockets – think emerging European-side districts or value plays on the Asian shore – offering high potential. For 2025 Q3, data shows that average yields reached 7.76%, with budget-friendly districts often posting even higher returns.
- A second home with a passport option:Turkey’s Citizenship by Investment Program remains one of the world’s most popular, bridging lifestyle and long-term investment. Purchase real estate worth at least $400,000 USD, annotate a three-year no-sale hold on the title, and you can apply. That’s a concrete Plan B for investors seeking global mobility.
Where to Purchase Property in Turkey Right Now
- Istanbul’s continued value: Beyond the postcard skyline, districts like Maltepe or parts of the western corridor offer modern stock, metro connectivity, and high rental potential. Affordability can still be found in Istanbul city centre districts including Airbnb-suitable Şişli and emerging urban generation areas such as Kağıthane.
- Antalya’s sun and sport appeal: Year-round tourism, international schools, and an airport connecting Europe, make Antalya’s new-builds ideal for rental investors or relocating with a family. The lifestyle appeal, such as sailing on Saturday or espresso by the marina on Sunday, keeps occupancy levels strong.
- Izmir’s design-forward resurgence: Walkable neighbourhoods, a cultured food scene, and modern infrastructure upgrades are nudging Izmir into the “why didn’t I buy here earlier?” column. Families and remote professionals love Izmir, and so do landlords.
Advice for Canadians Purchasing Turkish Real Estate
- Buy for the tenant, not the brochure. Focus on transport links, hospital proximity, university catchments, and buildings with efficient layouts and amenities. High yields reward practicality.
- Demand data and then verify it. Insist on third-party rent opinions and to see developer track records if buying off-plan. Low vacancy levels, not price, is the main yield destroyer.
- If citizenship is part of the plan. The minimum purchase is $400,000 USD, with a Title-Deed note blocking any sale for three years. It is always advised to work with local experts.
- Mind the macro. In real terms, prices can drift from nominal headlines, which is great for entry, but look at currency exposure and consider hedging if your liabilities are in USD / EUR.
Why a Canadian Investment in Turkey Works?
- Diversification with purpose: Canada’s correction is orderly, not existential. By keeping core holdings at home and adding income from a Turkish property on top, you’re balancing a slow-and-steady North American blue chip with a high-yield Mediterranean growth note.
- Cycle offset: Canada’s next cycle likely needs time to arrive. RBC sees stability after the current drift, with a calmer 2026 as rates settle. Your investment in Turkey will pay you income while you wait.
- Lifestyle arbitrage: Enjoying spending summers in Turkey – where cappuccinos are sidewalk theatre and winters where the coast stays alive. Use your property for holidays, and then put it back to work – legally and professionally managed.
Consider Turkey – Contact Us Today
Canada’s housing market in 2025 is not broken, it’s just slower, with a resurgence expected when confidence and costs find balance. Meanwhile, Turkey’s property market is set to surge – high rental yields, lifestyle-rich, and friendly policies for investors.
If you’re holding capital and are waiting for the next Canadian ‘Buy Zone’, consider sending some of it on a working holiday to Istanbul, Antalya, Bodrum, or Izmir. That way, when Canada peaks again, you’ll already be earning – collecting rent in the sun, a new passport in your pocket, and a modern diversified portfolio.
For more information about investing in Turkey as a Canadian citizen, please call or contact us to speak with our local advisors at Property Turkey. Our agents speak your language and we have already assisted hundreds of Canadian nationals throughout our 20+ years of experience in the market.
Frequently Asked Questions (FAQ) for Canadian Investors
Q: Can Canadians legally buy property in Turkey?
A: Yes. Canadian nationals are legally allowed to purchase real estate in Turkey. A few military zones are restricted from ownership for all foreign nationals. But otherwise, ownership is relatively straightforward.
Q: Do I need to travel to Turkey to complete a property purchase?
A: Properties can be purchased remotely with a notarised Power of Attorney granted to a local lawyer in Turkey. However, we strongly recommend travelling to Turkey in order to view and select your investment in-person.
Q: What taxes will I pay on property in Turkey as a Canadian?
A: A one-time Title Deed Transfer Tax is payable – typically 4% of the property value. Small annual property taxes are also payable as a homeowner.
Q: Is rental income from Turkey taxable in Canada?
A: Yes. Residents of Canada must declare worldwide income. This includes rental income you receive in Turkey. Double taxation agreements are in place, meaning any tax you paid in Turkey will be offset against your liability in Canada.
Q: Can Canadians apply for Turkish Citizenship by Investment?
A: Yes. If a Canadian citizen purchases qualifying real estate in Turkey worth at least $400,000 USD, they can apply for Turkish Citizenship and a Passport.
Q: What are the rental returns in Turkey compared to Canada?
A: Data shows that property investments in Canada typically return 2% to 4% per annum. In Turkey, average rental yields are between 6% and 9% depending on city and area.
Q: Are there risks for Canadians buying property in Turkey?
A: As with any real estate investment, there will always be some degree of risk. Working with the best real estate agencies in Turkey will help negate any potential problems. A good agent will verify all legal checks on your behalf.
Bodrum 
4 
4 
X